Waterford Wedgwood seeks fresh cash to aid recovery

The Dublin-based crystal and china maker Waterford Wedgwood made its fourth cash call on the market in less than three years yesterday, asking its investors for a further €60m (£41m) to help fund its recovery.

Unveiling a full-year operating loss of €130.8m, the chief executive, Peter Cameron, said that the company's performance in the year to the end of March had been "unacceptable". However, he said the transition back to profitability was now gaining momentum.

Although operating losses for the group increased in the first half of its last financial year, they narrowed considerably in the second half. Sales on continuing operations were some 10.4 per cent ahead of the previous year, principally as a result of the company's acquisition of Royal Doulton at the end of 2004.

Sir Anthony O'Reilly, the chairman of Waterford and also the chief executive of Independent News & Media, the publisher of The Independent, has said he is to take up his full allocation in the 3-for-12 rights issue, as is Waterford's deputy chairman, Peter John Goulandris. Together, they have a 51.35 per cent stake in the company, which, due to the full taking-up of their rights, will remain the same after the share issue. The remainder of the rights issue has been fully underwritten by Davy, an Irish brokerage.

Mr Cameron said: "The fundamental, group-wide restructuring programme announced a year ago is delivering as promised. The planned cost reductions and our new product and marketing initiatives are laying the foundation for an improved sales performance."

Waterford shares fell 2.2 per cent to 4.4 cents, giving it a market value of €191m.